Traffic light leaders agree on 2024 budget
The coalition government actually wanted to break with the practice of forcing political agreements in all-night marathon meetings. But in the dispute over the 2024 budget, the top representatives of the SPD, Greens and FDP have to make an exception: The breakthrough only comes early in the morning.
The traffic light coalition has reached an agreement in the dispute over the 2024 budget. According to government circles, a press statement by the top representatives of the parties is planned for 12 noon at the Federal Chancellery.
Almost four weeks after the ruling by the Federal Constitutional Court, a solution to the budget crisis, which has put the coalition government under severe pressure, has thus been found. Chancellor Olaf Scholz of the SPD, Vice-Chancellor Robert Habeck of the Greens and Liberal Finance Minister Christian Lindner have since discussed how to plug a 17 billion euro hole in the budget for the coming year.
They also discussed how investments in climate protection and the modernization of the economy could be made possible despite the ruling. This is because there is a shortfall of 60 billion euros in the so-called Climate and Transformation Fund, which had already been firmly planned for projects in the coming years. For the coming year alone, this amounts to 13 billion euros. The judges in Karlsruhe had declared a reallocation in the 2021 budget null and void and ruled that the Federal Government may not set aside emergency loans for later years.
Bundestag will probably not vote until January
On Tuesday morning, Scholz, Lindner and Habeck met again at the Chancellery after they had adjourned their meeting the night before once again. They later brought in the heads of the Ampel parliamentary groups, spoke in their own parliamentary groups and then withdrew to the Chancellery again in a small circle. The agreement was not reached until early Wednesday morning. In the end, an overnight meeting was obviously necessary - a procedure that the coalition government actually wanted to avoid.
The coalition government actually wanted to pass the budget for 2024 before the end of the year, but it was already clear last week that this would no longer be possible due to the consultation times of the Bundestag and Bundesrat. It is now possible that at least the Bundestag Budget Committee could complete its deliberations before Christmas. However, this depends on how extensive the budget amendments proposed by the leading politicians are.
The Bundestag could then meet in January for the budget week and adopt the budget, after which the Bundesrat could give the green light. Until then, a so-called provisional budget would apply. For the time being, only expenditure that is necessary to maintain the administration and fulfill legal obligations is possible. In practice, however, the Ministry of Finance can authorize the ministries to use a percentage of the funds in the draft budget that has not yet been approved each month.
New debt or reduction of subsidies?
It is not yet known what solution Scholz, Habeck and Lindner have come up with. Among other things, the suspension of the debt brake for 2024 was discussed. The German constitution allows higher borrowing in special emergencies. The SPD and Greens had argued that the war in Ukraine could be such an emergency.
It would then possibly be possible to finance the aid payments for the country attacked by Russia via loans to a very limited extent. Lindner has not yet been convinced. FDP parliamentary group leader Christian Dürr also emphasized on Tuesday that he did not see the legal requirements for declaring an emergency. The CDU/CSU is considering taking the matter to the Federal Constitutional Court again if the debt brake is suspended.
Tough austerity measures in various areas were also debated. The FDP wanted to review social benefits and certain subsidies in particular. The planned increase in the citizen's allowance, for example, was controversial. The basic child protection scheme, which is due to start in 2025, could also be postponed further. Chancellor Scholz ruled out any cuts to social benefits - however, the SPD also said that it would be necessary to discuss the accuracy of benefits.
The Greens called for a reduction in climate-damaging subsidies, which in their opinion include tax benefits for diesel and agricultural and forestry businesses. This would provide the state with more revenue and therefore more leeway.
Read also:
- Year of climate records: extreme is the new normal
- Precautionary arrests show Islamist terror threat
- SPD rules out budget resolution before the end of the year
- Numerous oil, gas and coal lobbyists at climate conference
The traffic light coalition's top representatives, including Olaf Scholz, Robert Habeck, and Christian Lindner, reached an agreement on the 2024 budget early Wednesday morning, following an overnight meeting. This agreement will be officially announced in a press statement at noon at the Federal Chancellery.
Robert Habeck, leaders of the traffic light coalition, and Christian Lindner have been discussing how to address the 17 billion euro budget hole for the upcoming year while also ensuring investments in climate protection and economic modernization. They have been considering various solutions, including the suspension of the debt brake for 2024 and reviews of social benefits and certain subsidies.
Source: www.ntv.de
